Public Consultation on ICP 14 (Valuation) and ICP 17 (Capital Adequacy)

The consultation closed on 21 September 2023.

Integration of ComFrame material into ICPs 14 and 17 was finalised after the adoption of the ICS as a Prescribed Capital Requirement (PCR) on 5 December 2024. 

Background information

The IAIS has finalised the targeted updates to ICP 14 (Valuation) and ICP 17 (Capital Adequacy) following their adoption on 5 December 2024. ICP 14 establishes supervisory requirements for the valuation of asset and liabilities for solvency purposes. ICP 17 establishes regulatory capital resources and requirements. 

ICP 14 and ICP 17 were not included in the ICPs revision of 2019, recognising that work was on-going on the Insurance Capital Standard (ICS). As part of the Abu Dhabi agreement, it was decided that these two revised ICPs along with their related terms in the IAIS Glossary, would be adopted by the end of the ICS monitoring period (ie, by end-2024). 

Alongside the finalisation of the ICS, the updated ICP 14 and ICP 17, establish the supervisory requirements for the valuation of assets, liabilities, capital resources and requirements. As a consequence, they form the core foundation of all quantitative, risk-based insurance supervision and, therefore, also for the ICS. The updates made mainly relate to further enhancement of consistency of the text and to enhance clarity. 

IAIS members are committed to implementing the updated ICPs and ComFrame standards from 2025.